How does company health insurance work?
If you’re running a business, looking after your staff’s wellbeing can help make them feel more valued and, potentially, be more productive - benefitting both your workforce and your business! Offering company health insurance is one way of retaining staff and keeping your business running at full health, so is it something you should be thinking about?
What is company health insurance?
Also known as business medical insurance, company health cover is an employee benefit of private healthcare paid for by your business. You might also hear it referred to as group insurance or corporate health cover.
For staff, having a company health insurance scheme allows them to access private healthcare that they might not otherwise be able to afford. This can potentially help them to avoid long NHS waiting times and receive treatment sooner. Your business can benefit from a healthier and happier workforce and reduced sickness rates by enabling staff to get faster access to health support.
What does company health insurance include?
Depending on the business medical insurance policy you take out, your staff could access a range of treatments and therapies including:
- Treatment and support for mental health issues including depression and anxiety
- 24-hour GP helpline
- 24-hour stress counselling helpline
- Treatment in a hospital of your employee's choice
- Cancer care cover at an extra cost
- Pre-existing conditions cover (usually available to larger firms)
Offering health benefits to your employees gives them access to private healthcare when they need it most. And it shows that your business cares about them as valued and appreciated individuals, helping you to retain a loyal workforce.
What are the benefits of company health insurance?
Employee ill health can have a very real impact on a business but, often, it’s difficult for business owners to know how to manage staff illness and absence effectively. Recent YouGov research published by our insurance partner Zurich revealed that 22% of British businesses lack expertise when managing workplace absence, leaving them exposed to losing key staff members and productivity.
According to recent figures by the Confederation of British Industry (CBI), each day lost due to staff ill health costs a business, on average, £720. In the UK, 79% of firms offer health insurance, with it being a highly rated benefit by 89% of employees. And, with the Office for National Statistics estimating that there were almost one million job vacancies between October and December 2018 - the highest estimated since 2001 - staff retention is a key concern for many businesses.
Providing company health insurance shows a dedication to employees’ wellbeing, can make workers feel valued and offers your business a competitive advantage that can encourage staff retention.
Mental health and group insurance
Not only is physical sickness a factor for businesses, but mental health also plays a significant part in employee wellbeing. Research from the Britain’s Healthiest Workplace (BHW) survey 2017, developed by our partners Vitality Health and the University of Cambridge, indicates that productivity loss due to physical and mental health issues is costing the UK economy an estimated £77.5bn a year.
By offering effective workplace health and wellbeing solutions, businesses can contribute to higher levels of employee participation and lower levels of stress - all of which helps improve staff engagement and deliver tangible business benefits!